NEW YORK – Shares of Akorn Inc. fell Monday as the drug developer revealed that it had to restate some financial figures because it overstated certain amounts.
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The stock fell $9.55, or 17.3 percent, to $45.69 in afternoon trading. The stock has traded between $23.49 and $57.10 over the last 52 weeks.
The Lake Forest, Illinois-based company, which focuses on eye care products, will restate financial statements from 2014 because of errors it found during the financial review process for the first quarter of 2015. It overstated net revenue because of understatements of rebates and other sales allowances.
The company reaffirmed its 2015 earnings guidance of between $1.88 and $1.98 per share. Akorn said it does not expect to meet the filing deadline for its first-quarter results because of the pending restatements.
Despite the issue and plummeting stock, analysts are sticking by the company. Deutsche Bank reaffirmed a "Buy" rating on the stock and expects a lull in business development activity until the company gets current with its filings.
Jefferies analyst David Steinberg reaffirmed a "Buy" rating, saying the impact of the restatement appears relatively minor. Meanwhile, William Blair and Deutsche Bank analysts reaffirmed positive ratings for the company.